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Jkc/sco Public Library 

imen! information Center 
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Public Library -- Gov't Docs. 
Dcpt. # 41 

:st Six Months in Office 

jr Frank M. Jordan 
July 8,1992 

JUL 1 3 1992 





I Ml I I 

3 1223 07128 9301 

Public Library -- Gov't Docs. # 41 

Report: First Six Months in Office 

Mayor Frank M. Jordan 
July 8, 1992 

JUL 1 3 1992 



Mayor Frank M. Jordan 
July 8, 1992 

This marks my first full assessment of the progress to date of my administration, a 
practice which I shall continue every six months during my term in office. When I 
campaigned for office in 1991, 1 promised to be candid and accountable. That is the intent 
of this report. 

The document features detailed reports by members of my staff, who are prepared to 
offer additional information. Their names and office telephone numbers are included. 

In fact, as of this date I have not met all my goals as Mayor. We have, however, 
established our priorities, and we are moving forward with them. We have made progress 
in these first six months, but not enough progress. Much more needs to be accomplished - 
and this administration will do it. 

Some of what has been achieved in these first six months began under my predecessor, 
Art Agnos — the final designation in late May of San Francisco as a State Enterprise Zone, 
for example. It should add to the economic potential of the city. 

We will take full credit, however, for other accomplishments, such as the June 30th 
decision by McKesson Corporation to renew its lease for 15 years of its downtown corporate 
headquarters building . McKesson employs about 650 people at its headquarters. Last year 
it paid nearly $1 million in taxes to the City. 

My administration will also take credit for doubling street cleaning in the Tenderloin, 
South of Market and the Inner Mission districts. In addition, we have secured the 
necessary funding for the placement of hundreds more litter receptacles throughout the 

I have unveiled an ordinance outlawing aggressive panhandling, as well as a public 
education campaign, "Project Helping Hand," which will assist the homeless by 
channeling charitable contributions toward proven service providers. The City's 
Workfare program has been expanded to include more General Assistance recipients 
taking an active role to help clean our streets. 

And I took a tough, no-nonsense stand in the face of the very real threat of widescale 
destruction and violence, declaring a state of emergency and imposing a strict curfew when 
looting broke out in San Francisco after the Rodney King verdict. 

In the six months that I've been Mayor, no issue -- no challenge - has more occupied 
my time than the City Budget for Fiscal Year 1992-93. My administration inherited a $61 
million deficit that, because of a deep and on-going recession, skyrocketed to a $175 million 
budgetary shortfall. 

On June 1st, I personally submitted to the Board of Supervisors a delicately balanced 
budget made possible only because many groups and individuals made sacrifices, political 
and otherwise. I, too, made one of those sacrifices. 

When I campaigned for office, I firmly stated that I would not seek to raise taxes. The 
reality of the budget crisis, however, coupled with the very real prospect of severe cuts in 
vital city services, forced me to break that promise. The commercial utility users' tax on 
businesses — not residents — will be increased for one year, after which it will be eliminated 
under an explicit sunset provision. 

The final version of my budget meant no reduction in AIDS services, no libraries or 
health clinics closed, no Muni lines abandoned, and no reduction in police or other 
emergency services on our streets. 

However, as of this date, the City's budget crisis is far from over. The Board of 
Supervisors still has to take action on the City budget. Hearings by the Finance Committee 
will be completed tomorrow, and the full Board is scheduled to vote on Monday, July 20th. 

Also underway is the tough negotiating in Sacramento over the State Budget. San 
Francisco, like every other California municipality, is very likely to suffer from the final 
State Budget. 

Planning is already underway for what will likely be cuts unprecedented in our history. 
As soon as the State Budget is concluded, and therefore we know the precise impact on San 
Francisco's own fiscal situation, I will immediately meet with Board of Supervisors 
President Kevin Shelley and Supervisor Jim Gonzalez, Chair of the Finance Committee, to 
deal with what threatens to be a fiscal crisis unparalleled since the Great Depression of the 

I campaigned — and restated my pledge in my inaugural address — on building bridges 
in San Francisco, toward bringing together the diversity of the city for the good of the 
entire city. I believe that in the last six months, we have made progress, but it's only a 
start. We still do not have the healthy mix that I want, including on my own staff. 

I am pleased, however, that I have had the opportunity to attend on a regular basis 
unorchestrated neighborhood meetings — to allow for direct, two-way communication 
with San Franciscans. I shall continue to do so. I also place importance on making myself 
accessible to the news media for unrestricted questioning. 

I have not yet completed my realignment of the various commissions and 
departments. That will come soon and will reflect the full diversity of San Francisco. 
Obviously, at the beginning of my term I could have simply fired many department heads 
and commissioners in a "slash-and-burn" political style. But I did not. Instead, I chose a 
more logical approach: Let those serving on the commissions and in the departments first 

3 1223 07128 9301 

demonstrate their abilities to meet my standards, particularly with regard to developing a 
balanced City Budget. 

I willingly accept the fact that there have been some growing pains in these first six 
months of my administration -- widely reported growing pains. 

I was elected to make tough decisions in tough times. I will continue to make those 
tough decisions. 

C&& *f.^&- 


The following outlines the status of several key issues and programs which served 
as the platform for Mayor Jordan's campaign. In some areas, significant progress has 
been made, in other areas there is still a long way to go, and there are some 
programs that are simply not possible to achieve. 


Improve the Cleanliness of San Francisco's Streets 

The following outlines the status of several programs implemented and supported 
by Mayor Jordan designed to clean up the City: 

• 60% Increase in the Workfare Program. Cleaning service was doubled in the 
Tenderloin, South of Market and Inner Mission. 

• Implementation of seven-day-a-week mechanical cleaning on Mission Street 
from Embarcadero south to the County Line. 

• Expansion of mechanical flushing. Now includes all of Mission and Haight 
Streets, in addition to the current Downtown effort. 

• Have identified funding for placement of 300 litter receptacles. 200 from Office of 
Community Development, 100 from Convention and Visitors Bureau and 
interest by Wells Fargo Bank for possibly another 100. 

• June 28, kickoff of "Theme Park" cleaning service in Downtown Area and radio- 
dispatched litter patrols in neighborhood wind pocket zones. This service is for 
the summer months only, due to limited funding. 

• Preparation of Master Plan for repositioning of controlled Parking resources. 

• Summer Youth Program involving 100 youngsters. Coordination this effort with 
"Neighbors for Neighborhoods". 

• Met with Public Health Department's Director of Environmental Health to seek 
their cooperation on litter abatement enforcement, particularly DPW Section 173, 
requiring placement of litter receptacles at fast food/take-out establishments. 

• Improved coordination of volunteer clean-up activities by Clean City Coalition, 
Neighbors for Neighborhoods, and the Public Works' "Broom Brigade." 

background provided by Morton Miller, Mayor's Coordinator of Clean City Programs. 

Page 1 

Future Plans: 

• Expansion of Controlled Parking seven-day-a-week mechanical street cleaning. 
An effort will be made to downsize service in those areas of the city, where 
mechanical brooms run down "clean" streets and increase service in the high 
litter density areas. 

• Doubling the current Workfare Program. This will entail a seven-day-a-week, 
city -wide effort in various neighborhoods where litter containment is a major 
problem. We have met with key management personnel form the Department of 
Social Services on this matter. Equipment budget details have been worked out to 
allow for early acquisition of personnel carriers and portable toilets to allow for 
expansion of Workfare street cleaning activities into the neighborhoods. A 
special agreement with Laborer's Union Local 261 has been finalized that will 
reduce the cost of supervision for street cleaning personnel and give them the 
necessary flexibility to manage the daily personnel changes without instituting a 
formal Civil Service action. 

• Will seek additional sources of funds for placement of additional litter receptacles. 


Consolidate the Housing Authority, the San Francisco Redevelopment, 
Agency (SFRA), and the Mayor's Office of Housing 

This consolidation is still under consideration. All three entities are in an area of 
significant change. The Redevelopment Agencv was originallv formed to participate 
in a federal program that subsidized the cost of assembling land from multiple 
ownership. Since the federal government discontinued this program, the main 
function of the Redevelopment Agency has been to complete projects started under 
the original federally-funded land assembly programs, i.e., Western Addition and 
Verba Buena Gardens. 

In the past few years, the Redevelopment Agency has received approval from the 
Board of Supervisors to sell bonds which, in large part, have been used to finance 
subsidized housing throughout the City. These bonds, which can be sold without a 
city-wide vote approving them, are repaid by the increased property tax revenues 
generated from redevelopment areas. Under current projections, the ability to sell 
such tax increment bonds by the Redevelopment Agencv will reach its economic 
limit in three to four vears. 

-Background provided bv Ted Dienstfrev. Director. Mayor's Office of Housing. 554- 

Page 2 

A third function of the Redevelopment Agency is that it can buy and sell property in 
a more efficient manner than the city. And finally, the Redevelopment Agency has 
attempted to fund various efforts at economic development in certain targeted 
neighborhoods. While the economic development program has been developed in 
response to neighborhood /community input (and that process is an ongoing one), 
there has not been a rigorous cost-benefit evaluation of its effectiveness. 

Given the above, the Redevelopment Agency has started preparation of a strategic 
plan to justify its future role in city government. This planning effort is being 
overseen by senior staff at the Agency, several commissioners, Supervisor Willie 
Kennedy, Mayor's Office of Economic Planning and Development Director Kent 
Sims, and Mayor's Office of Housing Director Ted Dienstfrey. It seems prudent to let 
this planning effort continue for another six months before a major discussion of 
the alternatives is undertaken. 

The Housing Authority administers the 7,000 units of public subsidized housing 
constructed over the past 40 years, as well as the distribution of Section 8 Certificates 
(federal guarantees of individual household rent payments). Originally the 
Housing Authority units were viewed as transitional housing or housing for two or 
three years for a particular household. Over time, these units have become 
permanent housing and, in some cases, housing for a second or third generation of 
the same family. 

The Mayor's Office of Housing oversees the consolidation of City, state, and federal 
funds to build subsidized housing. For the past few years, a substantial portion of 
the funding for each subsidized development came from a state grant. The state 
grant program has been effectively discontinued for the foreseeable future. 

Before proceeding to consolidate these three separate entities dealing with different 
aspects of the subsidized housing market, it is necessary to arrive at a working 
consensus of what, if anything, we want each entity to accomplish. While 
consolidation is still a possibility, the more important immediate task is to clearly 
identify the mission of each entity. Whether consolidation or simply increased 
coordination is the better alternative remains to be seen. 

Implement a Gross Receipts Tax on Rental Housing Units to Create an 
"Affordable Housing Fund" 

The enactment of any new tax requires broad public support. The gross receipts tax 
on rental units was proposed by a segment of the rental housing industry as an 
alternative to vacancy control. Mayor Jordan opposes vacancy control supported 
this alternative as a candidate as an alternative to vacancy control which would 
advance the cause of increasing the among of affordable housing stock without 
causing the disinvestment associated with vacancy control. 

Page 3 

With the fourth defeat of vacancy control legislation at the polls last November, 
industry support for a gross receipt alternative disappeared. The enactment of a 
gross receipts tax requires a 2/3 majority from a city-wide vote, and it is highly 
unlikely such a vote could be achieved. Although Mayor Jordan would support a 
broadly-based, comprehensive approach to funding subsidized housing, to date the 
various "players" have not been willing to discuss seriously implementing such a 

Support Resident Management in the City's Public Housing 

As a candidate, and as Mayor, Frank Jordan continues to support resident 
management of public housing developments. The first request the Mayor made to 
the City's Office of Housing was to modify the Comprehensive Affordable Housing 
Strategy (CHAS) so that the residents could begin the process. This was done. 
Recently, the Mayor informed HUD that he wholeheartedly supported the resident 
management applications from: 


North Beach 




Hunters View 


Potrero Hill 


Robert Pitts 


Holly Court 

It is important to note that proposals A1-A4 were made without the Housing 
Authority oversight and proposals B1-B4 were made with the Authority's direction 
and involvement. The Mayor's Office of Housing is willing to experiment with a 
number of models to increase resident participation in management, with possible 
ownership as an eventual goal. Currently, Mayor Jordan is considering utilizing his 
Director of Housing, Ted Dienstfrey, in the role of facilitator between the 
developments' residents and the Housing Authority to develop such models. 

Dismiss Housing Authority Director David Gilmore 

Gilmore, the Director of the Housing Authority, serves at the pleasure of a term 
commission — a commission over which Mayor Jordan has limited control under 
the terms of the Charter. The current commission, which contains no 
commissioners appointed by the Mayor , recently extended Gilmore's contract 
through June 1994. Currently, Mayor Jordan has the option to fill one vacancy on 
the Commission. 

Page 4 

David Gilmore has overseen many improvements in the management of the 
Authority's developments, including overcoming long-standing debts, reducing the 
number of vacant units, and getting the Authority removed from HUD's "troubled" 
list for the first time in 10 years. However, additional progress must be made, and 
the goal over the next two years is to seek improve the quality of life in the City's 
public housing developments and to effect decreases in both crime in the 
developments and the sense of hopelessness among the residents. 

Increase the Supply of Affordable Housing 

Historically, the term "affordable" has been used to describe the many programs 
used to "subsidize" or use direct government funds to provide housing for low and 
moderate-income households. Recently the City, working with both non-profit and 
for-profit developers, received over 40% of state funds allocated for subsidized 
housing. Because of the state's budget crisis, these funds may be lost in the future. 
While there will be a number of ground breakings in 1993 on new subsidized 
housing projects, we are working on a new model for financing such projects 
without state funds. And without a new funding source to replace the state funds, 
there will be fewer units in 1994 than in 1993. 

Examples of affordable housing projects currently underway or set to begin in 1993 
include the Tenderloin Family Development project — a public-private partnership 
which will provide 175 units of affordable housing, most of which is geared toward 
families, and the Catholic Charities project, whose funding was recently secured, 
which will provide 34 units of low-income housing at 7th and Howard. 

Even in this period of difficult budgeting, Mayor Jordan has firmly maintained his 
support for subsidized housing. The FY 1992-1993 budget currently before the Board 
of Supervisors includes more than $15 million of Redevelopment Agency tax 
increment financing for subsidized housing. 

Another major source of affordable housing will be Catellus Development's 
Mission Bay project. Currently the amount of office space and the amount of 
housing in Mission Bay are fixed by ordinance, as approved by the Board of 
Supervisors. The current Board-approved development agreement calls for 8,000 
housing units, of which 3,000 will be subsidized, or "affordable". The Mayor's 
Director of Housing currently is developing a plan to fund the subsidized units. 
This plan must be presented to the Board. 

The development of any housing at Mission Bay is dependent on two questions: 

1. The extent and expense of the mitigation of any toxic condition of the soil at 
Mission Bay. Before any development occurs, a more comprehensive 
environmental program must be developed. 

Page 5 

2. The revival of the commercial real estate market in San Francisco. The 
assumption has heretofore been that increased property taxes from office 
development would pay for the subsidized housing. 


Streamline the City 's Cumbersome Planning Process 

On March 17, 1992, Mayor Jordan appointed a new Planning Commission and 
issued a strong mandate for change at the Planning Department. 

Highlights of the mandate include: creating a "one-stop shop" for permit processing; 
increasing the efficiency of the permit review activities so that no backlogs develop; 
establishing clear policies and guidelines with respect to building additions and new 
construction in order to reduce the number of Discretionary Review requests; 
shortening the time required, or in some cases even the necessity, for 
environmental review; bringing potentially controversial projects before the 
Planning Commission for an informal "early read" so that appropriate 
modifications can be made before too much time and effort is spent analyzing 
projects that may require major revisions. 

Following are programs that have been implemented since the issuance of the 

• Permit Processing: 

A new One-Stop Construction Services Center was opened on June 1st in 
cooperation with the Bureau of Building Inspection. More than 1,000 people 
used this service in the first month. There are currently no backlogs in 
permit processing. 

• Environmental Review and Approval of Major Projects: 

The EIR for a major COSTCO retail outlet was certified and the project was 
approved. This new store will provide 70 retail jobs and more than $2 
million in tax revenues to San Francisco. COSTCO also committed to a 
contribution of $80,000 a year for the next 60 years to support affordable 

The EIR for the new Main Library was certified and the project was approved. 

The EIR for the $2 billion San Francisco International Airport Expansion 
Master Plan was certified by the Planning Commission, allowing the further 

background provided by Lu Blazej, director of the City Planning Department, 558- 

Page 6 

consideration of the plan for the Airport Commission to move forward with 
the project. 

• Major New City Planning Efforts: 

The City Planning Department, in conjunction with the Chief 
Administrative Officer, has completed the preparation of several preliminary 
design alternatives for the new Embarcadero plaza and roadway in front of 
the Ferry Building. A citizens' committee, involving several hundred 
people, is participating in this effort. 

City Planning has initiated a planning effort in response to the demolition of 
the Central Freeway. A land use and transportation plan is currently 
underway in cooperation with other City agencies. 

An updated plan for the Bayview-Hunters Point neighborhood is near 

Several significant studies and reports have been published, including: 
Review of Seismic Information for San Francisco (February 1992); Commerce 
and Industry Inventory for San Francisco (June 1992); and Changes in 
Housing Inventory (June 1992). 

City Planning is reinitiating the Residential Conservation Zoning effort 
which will provide new zoning rules and design guidelines for San 
Francisco's neighborhoods and will bring greater predictability for neighbors 
and those wishing to add to their homes or build new ones. 

The department is also making progress in the computerization of the 
department's record keeping and permit processing systems, which will 
provide faster and more efficient permit processing and information retrieval 


Improve and Expand Homeless Services 4 

As a candidate for mayor, Frank Jordan pledged to expand homeless services. He 
pledged to phase out Multi-Service Centers; implement a Workfare program which 
requires able-bodied homeless people to "meet the City halfway" and help solve 
some of our other urban problems, such as cleaning the streets and removing 

background submitted by Lawrence Cruz, Mayor's Coordinator of Homeless 
Programs. 554-6555 

Page 1 

graffiti from the buses. He also pledged to discourage aggressive panhandling in San 
Francisco. The following outlines the status of key aspects of that homeless policy: 

• Aggressive Panhandling Ordinance: 

Mayor Jordan asked Supervisor Bill Maher to introduce a strong anti-aggressive 
panhandling ordinance. If it is not adopted, it will be placed on the November 
ballot. The ordinance outlaws aggressive panhandling and authorizes police to 
arrest persons engaged in coercive and threatening conduct while accosting 
passersby for handouts. The penalty for aggressive panhandling may be a fine, a 
jail term, or a work alternative program. 

• "Project Helping Hand:" 

"Project Helping Hand" is a cooperative public awareness campaign with local 
merchants, the business community, and the Mayor's Office initiated to 
discourage people from giving money directly to panhandlers, and to encourage 
them instead to give to the Mayor's Homeless Fund or other homeless charities. 

• Mobile Van Program: 

A mobile outreach van program, which will provide emergency treatment and 
transportation to help get the chronically homeless off our streets, will begin in 
mid-July. Funds for the purchase of a van were granted by the Koret 
Foundation. The Departments of Health, Social Services, and other service 
providers will augment and coordinate existing outreach and social services with 
this new program. 

• Increased City support for community-based clinics for alcoholics and substance 

The Fell Street Drop-In Center was approved with minimum community 
opposition and will provide access to existing substance abuse programs. A 
neighborhood advisory committee has been established to minimize any 
negative effects this center might have on the neighborhood. 

Additionally, through Congresswoman Nancy Pelosi's effort and the efforts of 
the previous administration, the City has received $4 million federal grant for a 
medical detoxification and transitional housing program for substance abusers. 
A site for the detox center currently is being selected, and the program will begin 
operation in 1993. 

• $3 million has been set aside as matching funds for transitional housing for the 
homeless. These funds will be matched by federal McKinney Act monies. 

Page 8 

• The City has been granted $3.5 million for housing for homeless persons with 
AIDS from the federal government — a process which began under the previous 

• Workfare programs: 

Workfare has been increased to assign GA recipients to help clean the streets as 
part of the Clean City campaign. This expansion will begin in August and will 
include the participation of workers in the General Assistance Training 
Employment Services program, an employment training program administered 
by DSS. (For detailed information see the Clean City Programs section.) 

Future Homeless Efforts: 

• A supplemental is being prepared by the Public Guardian's office to establish a 
County Veterans' Services Office in San Francisco. This office will process claims 
for homeless veterans who may be eligible for veterans' benefits. This is 
partially reimbursed by the State Department of Veteran Affairs. This program 
will help reduce the General Assistance rolls. 

• An expansion is planned of the Modified Payment and the Representative Payee 
programs to help stabilize the physically and mentally ill who currently receive 
governmental entitlements is being designed. 

• The computerization of the emergency services for the purpose of shelter 
referral, data base collection, and centralized intake services is being actively 
pursued. The Mayor's Office is securing donations of computer hardware, 
software, and training from the private sector. 

• To ameliorate the effects of large numbers of homeless on the streets, public 
toilets and storage lockers are needed. Discussions with Department of Public 
Works, Recreation and Park, the Parking and Traffic Department, and the private 
sector to open and expand public toilets and other facilities are underway. 

• Discussions with the corporate and public sectors will be aggressively pursued to 
advocate for more jobs and economic development opportunities for the 
employable homeless. 

• Ongoing efforts to identify funds for the development of low-income, affordable 
housing, and supportive housing will be made. Coordination with the Mayor's 
Office of Economic Planning and Development, the Redevelopment Agency, and 
the Interagency Housing Agency Taskforce will continue. 

It is important to note that the Mayor's 1992-1993 budget maintained the level of 
funding for the homeless programs in the Departments of Health and Social 
Services; no cuts were proposed. However, if state proposals for cuts in AFDC are 

Page 9 

achieved pass and the state mandate for General Assistance is removed, along with 
other health and welfare cuts, there will be a significant increase in homeless 
families and persons in San Francisco. And, given the expected resultant fiscal 
constraints, it will also be very difficult to maintain the present level of funding for 
homeless programs generally. 

Increase Funding for Job Skills Training for the Homeless, the Poor , and 
Youth 5 

As a candidate, Frank Jordan pledged to increase funding for job skill training for 
the homeless, the poor, and the City's youth. Mayor Jordan has maintained and, in 
some areas, increased job opportunities and training for youth through the Office of 
Children Youth and Families. 

Some of the programs available for youth include the Private Industry Council's 
(PIC) Summer Youth Employment and Training Program, which serves 
approximately 2,000 low-income youth from throughout the City; the Summer Jobs 
Program, a joint effort of the Mayor's Office, the PIC, and the state Employment 
Development Department. It provides private sector employment opportunities to 
young people 16-24 years of age; The Recreation and Park Department's 
"Workreation" Program, which provides a minimum wage opportunities to 200 
young people; PIC -STEP, which provides summer employment and year-round 
counseling to low-income young people transitioning from middle school to high 

Implement a Needle Exchange Program to Reduce the Spread of HIV 6 

During the mayoral campaign, Frank Jordan promised to take a leading role on 
behalf of the citizens of the City and County of San Francisco in combatting the 
Hrv/ AIDS epidemic and in stopping the spread of PIIV and AIDS. Part of his 
program was to legalize and implement needle exchange programs. 

Mayor Jordan has actively lobbied on behalf of two bills currently in the State 
Legislature that would legalize needle exchange. He has personally testified on 
behalf of the the legislation and lobbied with Governor Wilson to ask for his 
support should the bills pass. 

Additionally, Mayor Jordan, in numerous letters and speeches, has advocated for 
needle exchange programs with community organizations, elected officials, and 
medical experts. 

5 Background provided by Anthony Lincoln, director of Mayor's Office of Children, 
Youth and Families, 554-8990 

background provided by Jean Harris, special assistant to the Mayor, 554-6154 

Page 10 

Expand AIDS Services and Obtain the Necessary Funding 7 

In June, Mayor Jordan went to Washington, D.C., to testify before Senator Edward 
Kennedy's Labor and Human Services Committee on behalf of San Francisco and 
the U.S. Conference of Mayors to lobby for full funding of the Ryan White Care Act. 
The Ryan White Care Act could provide millions of dollars in funds for providing 
life-prolonging care and treatment services to more than 5,000 people with HIV in 
San Francisco. With regard to the City's proposed budget for the coming fiscal year, 
Mayor Jordan has not cut AIDS services. And in fact, the 1992-1993 budget included 
some additional funding for services for which there is no federal or state support. 


Get Traffic Moving Again by Addressing the Problems Created by the 1989 
Loma Prieta Earthquake 

One of the main priorities Frank Jordan set forth as a candidate was getting traffic 
moving again in key areas by addressing the problems created by the 1989 Loma 
Prieta Earthquake. 

Damage occurred to portions of all the highways which run through central San 
Francisco, including JTighways 480, 1-280, and US101-- the Central Freeway. It has 
been over two and a half years since the earthquake, and San Francisco does not 
have one of these freeways restored to fully operational. 

Mayor Jordan, working closely with Chief Administrative Officer Rudy Nothenberg, 
has met with Caltrans officials to review all of its projects and timelines in the city. 
Because the Mayor was not satisfied with the timelines presented by Caltrans, he has 
been urging them to move forward on their projects to open up these roadways. 


Work on five of nine portions began this Spring. The entire freeway is scheduled to 
be open by early 1994. Caltrans has informed Mayor Jordan that one lane, and 
possibly two lanes, of traffic will be open by the end of this year. 

7 Background provided by Jean Harris, special assistant to the Mayor, 554-6154 

background provided by Stuart Sunshine, special assistant to the Mayor, 

Page 1 1 

Central Freeway: 

The City is in the process of selecting a replacement alternative for the northern 
portion of the Central Freeway from Fell Street north to Turk. Mayor Jordan has 
taken the position of a "no-build" policy for this portion of the freeway. This 
position, which was recently approved by the Board of Supervisors, not only will 
provide close to six acres of land for housing, but will liberate the Hayes Valley 
neighborhood. Upward of 500 units of new housing in a mix-use development can 
be built on this site. 

San Francisco does not intend to get into the business of building freeways. Instead, 
the city will seek the retrofit equivalant funds from the emergency relief fund and 
use the money for surface street improvements, which may include such features as 
a central traffic control signal system for this particular corridor which can be 
expanded city-wide if successful. 

Mid-Embarcadero Roadway Project- 

The city currently is in the environmental phase of analysis for the middle portion 
of the replacement roadway. The selection of the alternatives for environmental 
review should be completed by the end of this summer. Preliminary costs and 
construction schedules for the alternatives have been released. Mayor Jordan is 
concerned that the State's time schedule is too slow and the costs are too high. 

Currently, $149 million has been identified for potential funding sources for this 
portion of the project. This total includes federal, state, and local funding sources. 
The Mayor's position remains the same as it did six months ago: to reopen this 
section of our city to traffic as soon as possible, providing we've considered the best 
way to move traffic, transit, bicycles, and pedestrians, while maintaining and 
preserving a good balance of open space and urban design. 

Bring BART to the Airport 

As a candidate, Jordan campaigned to bring BART directly to the airport. Presently, 
$586 million in federal assistance is available for the extension from the Colma 
Station down the Peninsula. The majority of this project will be paid for by the 
Federal Government through ISTEA funds, with the remainder to come from a 
San Mateo County-wide sales tax, which was passed specifically to expand BART 
service to that county. 

A combined transportation center, west of Flighway 101, will link the airport light 
rail system, which will ring both the departure and arrival decks of the airport, 
Caltrain, and BART. An additional $400 million would be needed for bringing 
BART directly into the airport. For now, the region should take advantage of the 
federal funds available for the project. 

Page 12 

Extend Light Rail to the Bayshore Corridor 

The scope of study has been completed, and a request for proposals has been issued. 
In 1989, Proposition B, the city's half cent sales tax for transportation was passed by 
the voters. It provided $100 million for a transit system along the Bayshore corridor. 

The Bayshore Corridor is currently underserved by mass transit. When Mayor 
Jordan took office in January 1992, he immediately moved to seek the 
Transportation Authority Commission's support to allocate funds for preliminary 
scoping for the proposed Muni Metro extension. 

Increase the Supply of Off-Street Parking 9 

In 1992, the City has moved forward on construction of the greatest number of off- 
street parking project since 1950. The following outlines the status of some of these 

• Continued construction of Polk/Bush Garage, a 132-space, 6-level parking 
garage with 3700 square feet of ground floor commercial space. 

• Began seismic retrofit and expansion of the Ellis-O'Farrell Garage; expanding 
the current facility from 912 to 1,288 spaces. Project scheduled for completion 
prior to 1992 Holiday shopping season. 

• Continued design of seismic retrofit and expansion of Fifth and Mission 
Garage from 1,782 spaces to 2,622 spaces. Construction to begin January 1993. 

• Acquired property for Vallejo-Churchill Garage, a 300 space facility in 
Chinatown/North Beach. 

• Completed refurbishment and security improvements at the 16th and Hoff 
metered garage. 


Expand CPOP Program 

The Police Department will continue to maintain a strong presence in the 
Tenderloin District and will expand the CPOP program throughout San Francisco. 

background provided by Tim Johnson, acting director, the Department of Parking 
and Traffic, 554-9823 

Page 13 

Bring the Police Department up to its full authorized strength 

Mayor Jordan's budget for FY 1992-93 included one academy class and made 
provisions to assure a full complement of police officers on the street. In looking 
for a new police chief, Mayor Jordan will look for someone who will maximize the 
departments resources and manage the departments resources to assure that the City 
is a safe place to live. Additionally, even with the deficit, funds were included for a 
new class of 911 dispatchers and the department is looking at ways to improve 
telephone response times and working conditions of 911 dispatchers. 

Violent behavior and willful destruction of property during protests will 
not be tolerated 

The right to demonstrate is a cherished right, but a delicate balance must be found to 
ensure the safety of all citizens and protection of private property. No incident 
symbolizes this issue more than the aftermath of the Rodney King verdict. 

When the protest turned to looting following the verdict, Mayor Jordan 
immediately issued a state of emergency in San Francisco and imposed a curfew for 
two nights. More than 2,000 arrests were made. Although several downtown 
merchants incurred significant property damage and looting on the first night of 
protests, the strict enforcement of the curfews and the imposition of an emergency 
declaration enabled the city to react quickly and to ward off any further looting on 
subsequent days. 


Keep the Giants in San Francisco 

Immediately following the defeat of the San Jose initiative to construct a new home 
for the Giants, Mayor Jordan appointed Walter Shorenstein to head a small 
negotiating committee that is working with potential investors to acquire the team 
and/or develop a ballpark. Mayor Jordan has personally met with Giants owner Bob 
Lurie and members of the team's management, as well as with Baseball 
Commissioner Fay Vincent, to reinforce his goal to keep the Giants in San 
Francisco. The Mayor's Office has also been working with Supervisor Angela 
Alioto's Ballpark Advisory Committee on plans for a ballpark site. 

Page 14 


Develop the Hunters Point naval Shipyard in a manner that strengthens 
the local economy while ensuring jobs and input to local residents 

The Mayor's Office of Economic Planning and Development is currently moving to 
successfully conclude lease negotiations with the United States Navy to bring the 
500-acre former naval shipyard under City ownership and control. The City's 
objectives in the lease negotiations are to maximize the long-term economic 
benefits to the City and to the Bayview Hunters Point community; to protect the 
City's short-run financial interests; and to assist and stabilize existing shipyard 

Among the strategies being pursued for the shipyard are the following: reach a lease 
agreement with the Navy that assures the City will cover public safety expenses with 
Shipyard revenues on, at least, a breakeven basis; assure that the City has no toxic 
liability for existing environmental conditions; develop a master land use plan that 
maximizes economic benefits to both the City and the surrounding communities. 

The Mayor's Office of Economic Planning and Development and the San Francisco 
Redevelopment Agency have been leading the Hunters Point Naval Shipyard lease 
negotiations with the Navy, with the support of an intra-department task force that 
includes the City Attorney, the departments of Public Health and City Planning, and 
the Port. 

For Hunters Point, the City and the Navy are pioneering the concept of 
"parcelization" — full toxic clean-up scheduled on a parcel-by-parcel basis, rather 
than full site clean-up on a "worst first" basis. Parcelization will clean up Hunters 
Point one section at a time, and will enable the City to develop and put to 
productive use land as it comes available in developable parcels. If we were to 
follow the standard practice of full clean-up before accepting retrocession, Hunters 
Point would remain unusable- and a severe drain on City resources-- until at least 

Mayor Jordan is expanding the Hunters Point Shipyard Citizens' Advisory 
Committee to continue to fully advise him on specific needs of the Bayview 
Hunters Point Community that should be considered in developing a land use plan; 
city-wide needs; the needs of current shipyard tenants (including the artists colony); 
and ways to reconcile competing interests within the framework of proposals for the 
property. The membership of the Citizens' Advisory Committee is quite diverse 
and includes representatives from the Bayview Hunters Point neighborhood, the 

10 Background provided by Ron Blatman, Director of Business Development, Mayor's 
Office of Planning and Economic Development, 554-6478. 

Page 15 

business community, the maritime industry, current shipyard tenants, and 
organized labor. 

The first of a series of public hearings on the future of the Shipyard was held this 
week to facilitate public input on the development of a master plan for the site. 


Revitalize the Port of San Francisco 

As a candidate for Mayor, Frank Jordan pledged to revitalize the Port of San 
Francisco. Presently, the Port is in the midst of a comprehensive land use planning 
process that seeks to balance commercial development, recreation, and maritime 
uses, a process mandated under Proposition H. Mayor Jordan will continue to 
support the Port's efforts to improve its economic posture. Some of the projects on 
which the Mayor's Office of Economic Planning and Development is assisting the 
Port include: 

Fisherman's Wharf: 

• The Jordan Administration is continuing the previous administration's support 
for improvements of Pier 45's fish handling facility, as well as an 88-berth 
expansion of the Hyde Street Pier, both of which are currently underway. 

• The Mayor's Office is working with Redevelopment, Planning, and Port officials 
on the long-term proposals for the Fisherman's Wharf Triangle. Mayor Jordan 
has supported Alioto's marketplace proposal for the Fisherman's Wharf 
Triangle and it is currently moving forward. 

• Pier 39: Mayor Jordan continues to support Underwater World, the waterfront 
aquarium plan which began under the previous administration. 

• Pier 35: The Mayor's Office has been monitoring the Pier 35 RFP process to 
upgrade the current cruise terminal. 

• Ferry Building: The Mayor's Office has encouraged the Port to accelerate plans 
for the renovation of the historic ferry Building at the foot of Market Street. On 
his recent trip to Washington D.C., Mayor Jordan lobbied on behalf of the Port of 
San Francisco in support of federal funds for a study of possible improvements 
that will be necessary to accommodate increased ferry service. The Port is 
seeking $500,000 to conduct this study 

11 Background provided by Ron Blatman, director of Business Development, Mayor's 
Office of Economic Planning and Development, 554-6478 

Page 1 6 

• Scandinavia Center The Mayor's Office has been working with the developers 
of Scandinavia Center to help them secure a fourth investment partner so that 
the project can proceed as planned. 

• Ship Repair The Mayor's Office has worked with the ship repair industry to 
assure their continued viability to the maximum extent possible. In June, Mayor 
Jordan travelled with a trade delegation of representatives from the ship repair 
industry, San Francisco's business community, organized labor, and the Board of 
Supervisors to Washington, D.C. to lobby on behalf of increased ship repair work 
from the Navy, as well as an increased Naval presence in the Bay Area. 

The Mayor's Office of Economic Planning and Development has explored 
having both major San Francisco ship repair firms share drydock facilities at 
either the Southwest Marine site or at drydock #4 at Hunters Point. The Port 
also is evaluating the advantages of establishing an independent drydock 
operation by the Port (open to all ship repair firms) as compared with the current 
situation of each firm maintaining its own facility. 


Improve the Business Climate in San Francisco and Diversify the Tax 

As a candidate for Mayor, Frank Jordan pledged to turn San Francisco's anti- 
business image around. Since taking office, Mayor Jordan has been working to 
aggressively promote his administration's pro-business attitude, including 
supporting specific projects that foster economic development, and the strategic 
planning for further growth and diversification of City's economy. 

The following outlines steps being taken by Mayor Jordan's Office of Economic 
Planning and Development to improve the business climate in San Francisco. 

Business Assistance: 

• Started under the Agnos Administration, an area which includes two thirds of 
the City's businesses recently was designated as a State Enterprise Zone. 
Established with the Enterprise Zone designation are new Enterprise Zone 
Working Capital Loan Guarantee and Facade Improvement Loan Programs 
which are expected to come on-line in the near future. 

1 background provided by Ron Blatman, director of Business Development, Mayor's 
Office of Economic Planning and Development, 554-6478 

Page 1 7 

• Established a Business Assistance Center solely for the purpose of addressing the 
day-to-day needs of large and small businesses. The Center handles an average of 
40 telephone inquiries and 8 walk-ins per day, covering a host of business topics 
ranging from permitting and general information inquiries to inquiries on 
licensing and loan applications. 

• Began the implementation of an Affirmative Action program for the Mission 
Bay project — the first part of which entails the establishment of a Mission Bay 
Economic Development Program Board explicitly charged with overseeing the 
programs in the Mission Bay Affirmative Action Policy as defined in the 
development agreement with Catellus. 

Business Development: 

• Working with the City Planning Department, accelerated EIR approval by five 
months for the $2 billion Airport expansion project scheduled to begin late 1992. 
According to the Airport, the move saved the City approximately $11.5 million. 

• Working with City Planning, assisted in the approval of a new COSTCO outlet 
in San Francisco, the huge discount chain's first such move into a major urban 
center. Construction starts this summer. 

• Assisted the Department of Parking and Traffic in facilitating the Fifth & Mission 
Garage expansion project, which will provide for 850 new parking stalls. 
Construction starts January 1993. 

• Working with the Redevelopment Agency to assist the The Gap in locating and 
developing a new corporate headquarters site in the City. 

• Assisting UCSF (the City's second largest employer, after City government) with 
short-range and long-range expansion plans. A $300 million facilities upgrade 
and construction of a major cancer center to begin at Mt. Zion Hospital by early 

• Assisting the State Bar with major expansion plans. 

• Working with State of California economic consultants on State facilities located 
within San Francisco — including new and renovated structures. 

• Working on locating a major new Federal building complex to San Francisco 
which will retain more than 4,000 local jobs. 

• Assisting Pacific Center developers with plans for major new retail center at 4th 
and Market Streets. 

Page 18 

• Working with the Redevelopment Agency on the plans and RFP for the Yerba 
Buena entertainment complex at 4th and Mission Streets. 

• Assisted METADesign (based in Berlin, Germany) in establishing its first U.S. 
office, which opened in June in downtown San Francisco. 

Other results of the change in the business climate include: 

Wells Fargo's decision to maintain existing San Francisco operations and 
delay possible move of back office operations to Sacramento. 

McKesson's decision to maintain its corporate headquarters in San Francisco. 

Bank of America's continued commitment to the City following its recent 
merger with Security Pacific Bank. 

Simpson Paper's expanded headquarters presence. 

Potlatch's renewal of headquarters space. 

Homestake Mining's expanded headquarters presence. 

IBM's decision to consolidate West Coast administrative functions in San 

San Francisco recapturing role as West Coast's premier financial center (three 
of California's four largest banks are headquartered here); increased 
investment banking presence — new or expanded facilities for local firms such 
as Montgomery Securities (new trading floors); Robertson, Stephens & Co. 
(new headquarters); and national firms including Morgan Stanley (moved 
public finance division form LA); Goldman Sachs (moved some operations 
from LA); Alex Brown (established new western region based in SF); J.P. 
Morgan (new trading operations & expanded west coast base); Merrill Lynch 
(consolidated west coast sales & trading operation): Smith Barney (looking 
for new expanded space); Donaldson Lufkin, & Jenrette (looking for new 
expanded space); Dillon Read (moved expanded west coast office from Palo 
Alto back to SF); Prudential Securities (looking for new expanded space). 

MOEPD is also working to attract additional foreign government offices to 
San Francisco. Results so far include: a new Belgian Trade Office opened 
February 1992; a Korean Trade Center to open this summer; a Chilean Trade 
Office to open this summer; DATAR (Invest in France) to open this summer 
in French Trade Commission offices. MOEPD is working to open an Italian 
Trade Commission office by year-end as well as a Czech Trade Office by the 
Fall of 1992. 

Page 19 

SFO Marketing: 

The Mayor's Office of Economic Planning and Development is working with the 
San Francisco International Airport on marketing SFO to international air carriers. 
Not only will an expanded international air carrier presence increase trade and 
tourism opportunities for San Francisco, but also for the entire Bay Area region. 
The following results have been achieved: 

• Aeroflot started first SFO-Moscow service in May (currently once a week, going 
to 4 times weekly within one year). 

• KLM (Royal Dutch Airlines) has designated SFO its next U.S. gateway. SFO- 
Amsterdam flights scheduled for June 1993. 

• Asiana Airlines will start SFO-Seoul flights November 1992. 

• LACSA expected to start SFO-San Jose, Costa Rica flights summer 1992. 

• Alitalia expected to choose SFO as next U.S. gateway. SFOTtaly flights would 
begin 1993. 

• EVA Airlines expected to start SFO-Taipei flights in 1993. 

• Virgin Atlantic expected to start SFO-London flights within 12 months. 

• British Airways expected to double capacity to 2 SFO-London flights daily within 
12 months. 

• United Airlines started SFO-Paris flights this spring, first nonstop SFO (any U.S.) 
Shanghai flights this summer, doubled capacity to 2 SFO-Hong Kong flights daily 
this summer, and is looking to double capacity to 2 SFO-London flights daily by 
early 1993. 

• Mexicana initiated new nonstop service to Mexico City. 


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